The move was made to coincide with a series of other changes new CEO Matt Williams has implemented to try and reach profitability.

TechCrunch reports that Digg is running at a loss without about $15 million in revenue. With the cuts, Williams says the company is well on its way to profitability in the middle of next year.

"Unfortunately, to reach our goals, we have to take some difficult steps," Williams wrote on his company blog. "The fact is our business has a burn rate that is too high. We must significantly cut our expenses to achieve profitability in 2011."

Williams added that other options were discussed but ultimately he decided, along with Digg's board, that the layoffs were necessary.